Should you swap your star fund manager for a cheap tracker?

In this episode of the This is Money Podcast, the hosts Georgie Frost, Simon Lambert, and Helen Crane delve into various hot topics in finance. They start by discussing the disappointing performance of two well-known fund managers in 2025, Terry Smith and Nick Train, whose respective funds yielded minimal to negative returns. The conversation highlights the debate between active and passive investing, questioning whether investors should stick with star fund managers or switch to cheaper index tracker funds, given the difficulty of consistently beating the market.

The discussion further elaborates on the mechanics of fund management, distinguishing active fund management from passive strategies that simply follow market indices. The hosts point out that while renowned fund managers often boast impressive long-term records, recent trends reveal their underperformance over a shorter timeframe. With the global stock market experiencing a significant surge, primarily driven by a handful of influential tech companies, many investors are questioning the value of holding onto funds that are not delivering competitive returns.

Shifting gears, the episode transitions to the recent changes in cash ISA limits announced by the Chancellor. The proposed reduction aims to encourage more investment in UK companies but has faced skepticism, even among MPs. Critics argue that cutting the cash ISA limit will not incentivize the desired shift in consumer behavior towards investing in UK stocks, and that it risks undermining popular saving programs.

Finally, the hosts address the current state of the London housing market, revealing a steep decline in property values that has caught many homeowners off guard. Areas previously thought to be secure in terms of investment are now witnessing significant price drops, making it a challenging time for sellers.

Throughout the episode, listeners are encouraged to think critically about where they place their investments amid the fluctuating markets and consider whether to stay with traditional funds or explore other options, including the emerging trend toward passive investing.